The variable cost per unit
remains constant at each activity level
Fixed costs are costs thaat
remain the same in total regardless of changes in the activity level and
T/F: Changes in activity and other factors affect costs is an underlying assumption of cost-volume-profit analysis
False
The contribution margin ratio increases when
variable costs as a percentage of sales decrease
The contribution margin per unit decreases when unit selling price remains the same and:
variable cost per units increases
a formula for break even point in sales dollars is
fixed costs divided by contribution margin ratio
Formula for break even in dollars is?
fixed costs / contribution margin ratio
company has fixed costs of $60000 and a contribution margin ratio of 30%. How much in dollar sales does the company need to break even?
$200,000
At the break even point fixed costs are:
equal to the contribution margin
Sales (50,000 units) $1,000,000, direct materials and direct labor $300,000, other variable costs $50,000 and fixed costs are $130,000. What is Mizrahi's break even point?
$10000
What is Mizrahi's contribution ratio?
65%
Company is contemplating an expansion program based on expecting sales $600,000, variable costs $420,000 and fixed costs $120,000. What is the amount of break even sales?
$400,000